MediaRadar Blog

Native Advertising Deceleration and How to Sell Against It

For years now, there have been rumblings about whether the continued rapid growth of native advertising was sustainable.

For the first time, MediaRadar data shows that the number of advertisers buying native has plateaued over the last 12 months:

The most startling aspect of this plateau is that demand from new native advertisers is as strong as ever.

On average, 605 new native advertisers entered the market in each month of 2017. The lack of overall growth hints at the real problem – native renewal rates remain low and advertisers.

On the supply side, the growth in the number of sites selling native inventory has begun to slow down. There has only been a 5% increase since the end of 2016:

So what does this mean for the native market overall?

Native represents a chance to resonate with a target audience through content and storytelling. The content has to be pertinent to the reader. Simply put, native needs to be done well to be effective, as well as justify the cost of creation.

Average native renewal rates currently sit around 40%, but there are publishers at a much higher clip than this. The list below shows some of the most successful sites when it comes to native renewals.

So what traits do the publishers share?

It starts with exceptional focus on client service and campaign implementation. Simply put, you have to own your project and be a great partner.

Define your objectives with that client and detail how you will measure performance. Setting these expectations in advance will help alleviate issues caused by misunderstandings.

Continually measure campaign performance before the client asks. Proactively dealing with underperformance can make a massive difference when it comes to renewal time. Also, be transparent with your clients. Showing that you are staying on top of their business and making the necessary changes shows your worth as a partner.

This one may seen a bit obvious, but including auto-renewal terms in your contracts can make a massive difference. Once your client or prospect agrees to such terms, the impetus falls on proving your worth by showing the client’s return on investment.

To compete successfully, you have to do more than just offer native inventory. It is imperative that you adopt best practices.

Do more than just participate, flourish.

There are advertisers clamoring to place native ads, but at the moment there simply aren’t enough quality offerings to utilize. Investing in your native program now will provide ahuge impact on your business in the future.